Explain the mechanism of the notify method in event handling or notification systems.

The notify method is used to wake up one of the threads waiting on an object's monitor (i.e., that called wait() on this object). When a thread calls notify, one of the waiting threads becomes ready to run, but will only proceed after the monitor is released.

Example:

synchronized(obj) {
    obj.notify(); // wakes up one thread waiting on obj
}

This is important for thread coordination in multithreaded applications, such as event handling or notifications.